Testing intangible assets with indefinite useful lives for impairment:
A) occurs every year.
B) occurs when only there has been an indication of an impairment in the value of the asset such as a reduction in cash flow generation, idle assets, etc.
C) never occurs because the asset has an indefinite useful life.
D) occurs whenever required by the company's auditors.

Question

Quizplus · Accepted Answer

Intangible assets with indefinite useful lives are tested for impairment annually, regardless of whether there is an indication of impairment. This is to ensure that their carrying amount does not exceed their recoverable amount at any reporting date.

Testing Intangible Assets with Indefinite Useful Lives for Impairment